The ESOF project in the EU policy context

EU-seminar, 28th November 2007, Brussels

Dr. Mara Miele

Professor Terry Marsden

Dr. Selyf Morgan

CAP Reform Processes and Multifunctionality

1. Multifunctionality as a desired goal

2. Agenda 2000: Pillar II promoting Multifunctional role harnessed to Rural Development

CAP Reform Processes and Multifunctionality

3. 2003: Single Payment Schemes and enhanced Pillar II measures

4. Health Check- Consultation

5. 2013: Final decoupling?

6. What next for Multifunctionality?

Under the emerging rural development paradigm, to be multifunctional an activity must:

Add income and employment opportunities to the agricultural sector

Contribute to the construction of a new agricultural sector that corresponds to the needs and expectations of the society

Imply a reconfiguration of rural resources in and beyond the farm

Rural Development Plans

Axis I: Enhancement of the competitiveness of the agriculture and forestry sectors

Country/ Region

Prominent features of RDP

Finland 11% Young Farmers; modernisation of holdings; Adding value

Poland 42% Human &vocational potential; Quality and efficiency; Supply and processing chain improvement; cross compliance; rural infrastructure

Netherlands 30%

Entrepreneurship; Animal welfare; food quality; environmental impacts of agri, strengthen production chain

England 7% Vocational training, advisory service, modernisation, adding value, infrastructure for agri sector

Tuscany 38.5%

Support rural enterprises, markets links, innovative production, quality, opportunities for young people

Rural Development Plans

Axis II: Improvement of the environment and countryside

Country/ Region

Prominent features of RDP

Finland 74% Natural handicap; Agri-environment

Poland 32% Biodiversity; soil and water; forest cover; Environmental protection

Netherlands 30%

Natura 2000; National Landscapes; Forests; water systems

England 80% Environmental Stewardship, Woodland Grant Scheme, Hill

Farm Allowance; Energy Crops Scheme Tuscany 40% Biodiversity, water, renewable energy, landscape

protection

Rural Development Plans

Axis III: Quality of life in the countryside and diversification of

rural economy Country/

Region Prominent features of RDP

Finland 14% Diversification into non-agri activities; Micro-enterprises

Poland 20% Standards of living; rural infrastructure; entrepreneurship outside agriculture; rural services access

Netherlands 10%

Diversification in agriculture; rural micro enterprises; rural tourism

England 7% Non-agri diversification , micro-enterprises, tourism, conservation and rural heritage, skills acquisition

Tuscany 10.5%

Improving attractiveness of rural areas for enterprise and residents

Rural Development Plans

Country/ Region

Axis 1 Axis II Axis III Axis IV (LEADER approach)

Technical Assistance

Finland 11% 74% 14% 4.3% 1%

Poland 42% 32% 20% 4.6% 1.5%

Netherlands 30% 30% 30% 10%

England 7% 80% 7% 5%

Tuscany 38.5% 40% 10.5% 10% 1%

Axis IV: LEADER approach for Axes I-III

Share of the EAFRD budget in each country/region devoted to each Axis

Entrepreneurial Skill Development

1. E-skill development as a learning process: learning events and episodes constructed as a process over variable times and spaces.

2. Importance of new perspectives, creating novelty and the economic and social capability of detachment from prevailing conditions.

3. Skills sets and pathways as a form of social and spatial contingency- a social (empowering) space and remixing the economic, social and ecological.

4. Combinations of internal relational and external arena.

5. Ways of dealing with the contradictory and vulnerable policy frameworks which surround farming.

6. Multifunctionality as an active process

New remit for EU Agricultural Policy?

• From overproduction to scarcity – A new scenario of scarcity contrasting starkly with the

post-productivist assumptions of agricultural policy in the latter period of the C20th

• Indicators in the CAP reform Health Check e.g. the removal of set-aside

• Similar concerns from WP3– the rise of eastern economies; changes in diet;

climate change with its attendant effects on water resources and the development of bio-fuels

‘Declining crop yields, especially in Africa, could leave hundreds of millions without the ability to produce or purchase sufficient food. At mid to high latitudes, crop yields may increase for moderate temperature rises (2 - 3°C), but then decline with greater amounts of warming. At 4°C and above, global food production is likely to be seriously affected…..

…..Developed countries in lower latitudes will be more vulnerable - or example, water availability and crop yields in southern Europe are expected to decline by 20% with a 2°C increase in global temperatures. Regions where water is already scarce will face serious difficulties and growing costs.’

(STERN REVIEW: The Economics of Climate Change, 2006)

“Livestock are one of the most significant contributors to today’s most serious environmental problems. Urgent action is required to remedy the situation.” Henning Steinfeld, Chief of FAO’s Livestock Information and Policy Branch

With increased prosperity, people are consuming more meat and dairy products every year. Global meat production is projected to more than double from 229 million tonnes in 1999/2001 to 465 million tonnes in 2050, while milk output is set to climb from 580 to 1043 million tonnes.FAO report, Livestock’s Long Shadow –Environmental Issues and Options (2006)

Entrepreneur Description: Tuscany

Bulk Dynamic Entrepreneurs: strongly manifest the 3 skillsDeveloping Entrepreneurs: current limitations e.g. ownership/ succession being addressed to become more dynamicTraditional Entrepreneurs: Focus on production skills with limited strategic innovation, limited networking demand, limited risk taking but exploit well-understood strengths

VA Strongly Strategic Entrepreneurs: using formal business plans and strongly manifest the 3 skillsStrongly Networking Entrepreneurs: main strength in utilising contacts and networking while also manifesting other skillsGeneral Entrepreneurial: manifest the 3 skills but with some limitations e.g. undeveloped strategy or networking skills, or fails to develop many opportunities

NFD Strongly Strategic Entrepreneurs: conscious promotion of multifunctional character of farm inc. care, tourism, etc and relationship between farm and territory, production and marketingStrongly Networking Entrepreneurs: opportunistic approach, capitalising on limited farm potential and available state support

Strategic activity: Tuscan Farmers

Bulk Supply processors: dairies, abattoirs, wine cellars, co-ops/ agrarian consortia, large organised distributors All farmers show at least one of the entrepreneurial skills

VA On-farm processing and bottling wine, olive oil; raw sheep milk cheese; preserves and jams; hemp products, vegetable and fruit processing and packaging; farm sales; specialist breeds and plant varieties

NFD Agri-tourism, Social Care, Educational